The parent company of Teletext Holidays and Alpharooms has stopped trading and is in the process of appointing liquidators, BusinessLive has learnt.
Truly Travel has also had its membership of trade body Travel Trust Association (TTA) revoked after the TTA said it could not meet payments to non-travel creditors.
The announcement comes just weeks after the 海角视频’s Competition and Markets Authority (CMA) said it was launching court action against Truly Travel for its "inadequate progress" on refunding package trips cancelled due to the pandemic.
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In May, the CMA said Truly Travel had signed a voluntary agreement committing to refund package holiday customers for trips cancelled because of Covid.
But Truly Travel failed to meet its refund deadlines, leaving furious holidaymakers around the 海角视频 out of pocket.
The watchdog warned in September that it would take Truly Holdings to court unless it took urgent action to process refunds.
Dozens of people got in touch with BusinessLive earlier this year to say they had not been paid and hundreds of people made complaints to the CMA about Truly Travel. There are also now 3,500 individuals who have joined a Facebook group called ‘Alpharooms No Refund Support’.
BusinessLive asked the CMA what would happen in relation to the court action and what it was doing to help consumers who had still not received refunds, but the watchdog did not provide a specific response.
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Instead, a CMA spokesperson said: “We are monitoring the situation and are seeking further clarification. While these reports will concern people awaiting refunds, we will continue to take all possible action to get people the money they are owed.”
Truly Travel did not respond to a request for comment.
What does this mean for upcoming holidays?
According to the TTA, all customers with upcoming Teletext Holidays bookings have had their bookings re-contracted with TTA Travel and the holiday will go ahead as planned.
The TTA said financial protection remains in place for these bookings through its own scheme and also through ATOL. It said any unpaid balances, when applicable, will still be collected.
The TTA said no Alpharooms bookings would be fulfilled. Customers are being told to submit a claim for refunds on accommodation on the TTA website.
What if you're already on holiday?
The TTA has said that those already away on holiday should not be affected - and that it has contacted all suppliers and requested all bookings to remain in place.
The Teletext package holidays taken on by the TTA are all ATOL protected, which means even if Teletext Holidays collapses, customer's flights will still be valid.
What about customers still waiting for refunds?
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All Truly Travel customers with bookings that were cancelled due to Covid, who are still expecting a refund, are now required to submit a claims form as part of the process overseen by the TTA.
To complete the claims process, proof of payment made to Truly Travel is required for both the deposit and the balance paid.
The TTA estimates that refunds will take up to 12 weeks once the claims are confirmed.
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